The nearer a residential lease in Felling and Pelaw nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Felling and Pelaw will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Felling and Pelaw with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with procure Felling and Pelaw lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Toby was the the leasehold proprietor of a high value apartment in Felling and Pelaw on the market with a lease of fraction over sixty years unexpired. Toby on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Toby to invoke his statutory right. Toby procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were called by Ms Rosie Clarke , who purchased a newly refurbished apartment in Felling and Pelaw in May 1996. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical homes in Felling and Pelaw with an extended lease were worth £189,000. The average amount of ground rent was £55 billed monthly. The lease finished in 2079. Having 53 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.
In 2009 we were contacted by Mr and Mrs. B Thompson who, having bought a garden apartment in Felling and Pelaw in November 2002. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Felling and Pelaw with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 collected per annum. The lease ended in 2099. Taking into account 73 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.